Pensions - Articles - PASA comment on Single Financial Guidance Body

 Margaret Snowdon, Chair of PASA, commented: “The demand for pensions “help” has never been so high and, whilst PASA supports the introduction of the Single Financial Guidance Body (SFGB) to provide customers with advice they so need, the wide ranging advisory service the SFGB proposes to offer may be too much for a single body to handle. PASA proposes sharing this burden by leveraging the expertise of qualified and experienced pensions administrators, who already have prior knowledge of schemes and day to day contact with members.

 “Lack of clarity around the term “advice” has meant that administrators are so fearful of accidentally providing “financial advice” that, when asked for general help and information, they do not provide proper guidance and are in turn doing a great disservice to members. If the role of the new SFGB were expanded to formally vet and provide quality assurance of advice provided by administrators, their expertise could be used without fear and members would be sure the advice is impartial and in their best interests.”

 Snowdon added: “We believe the proposal presents a real opportunity to share knowledge and work together as an industry to improve public understanding and, ultimately, giving members a bit more of the help they need”.